Working in Madison, you should absolutely live in Morristown. It was where my first apartment after college was and it's a good mix of college town/young professionals/young families. It has a great food scene, tons of bars and nightlife and is close to parks and hiking. I honestly liked it better then both JC and Hoboken, but it's about an hour train ride from the city. Its only about 10-15 minutes from Madison though (Hoboken/JC are going to be about 45 from Madison with traffic).